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The Impact of Bank Credit on Employment Formality in Uruguay

Nestor Gandelman and Alejandro Rasteletti

No 4778, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper examines the effect of bank credit on employment formalization in Uruguay. Using a difference-in-differences methodology proposed by Cata~o, Page´s and Rosales (2011), the paper finds that financial deepening decreases informality, especially in more financially dependent sectors. The effect is additionally found to be greater for women and younger workers. Despite the severe economic crisis and a sharp contraction of bank credit experienced by the economy in the period of analysis, no evidence is found that the effect of bank credit on employment formality has changed over time.

JEL-codes: E26 G21 O16 O4 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-ban, nep-iue, nep-lam and nep-mac
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Related works:
Working Paper: The Impact of Bank Credit on Employment Formality in Uruguay (2018) Downloads
Working Paper: The impact of bank credit on employment formality in Uruguay (2012) Downloads
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